Basic replenishment
rbdistributes
Sep 24
1 min read
When deciding on how much to keep in stock and when to place a new order, the two major factors are lead time (how long it takes from order placement to order receipt) and demand (how much of that item is needed during that lead time phase).
Something to ponder - You stock an item that has a typical lead time of 2 weeks. It has been this way for as long as you can remember. Today, you receive word from the supplier that the lead time has increased to 3 weeks. What effect (if any) does this have on the re-order point of that item?
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